South Australian councils will receive long-term certainty for local road upgrades and maintenance after the Federal Government committed to continuing and indexing Supplementary Local Road Funding (SLRF) in the 2026-27 Federal Budget.
The Budget includes $230.8 million over the next decade for South Australia’s Supplementary Local Road Funding program, with councils to receive $20.6 million in 2026-27 and annual increases tied to indexation.
The commitment follows sustained advocacy from the Local Government Association of South Australia (LGA), which has worked with Federal MPs and Ministers to push for a fairer funding model for the state’s local road network.
Federal Minister for Regional Development, Local Government and Territories, Kristy McBain, said the funding would support safer and more efficient local roads across regional communities.
“This funding will help improve safety, freight efficiency and connectivity for communities across South Australia, particularly for regional communities,” McBain said.
“It’s another way the Federal Government is delivering for South Australians.”
Senator for South Australia, Don Farrell, said the funding would support councils maintaining local roads across the state.
“I am pleased the Federal Government is able to provide ongoing certainty to South Australian councils by making the Supplementary Local Road Funding program ongoing and indexed to the CPI,” Senator Farrell said.
“This commitment builds on the Federal Government’s significant ongoing funding to local governments to maintain and repair local road networks, including Roads to Recovery, Black Spots and Safer Local Roads and Infrastructure programs.”
LGA South Australia President, Mayor Heather Holmes-Ross, said the funding was an important step towards addressing long-standing inequities in federal local road funding allocations.
“Historically, South Australia has missed out on our fair share of road funding. This budget begins to address that, and it means councils can get on with delivering important road maintenance, knowing that this funding is locked in for the next ten years,” Holmes-Ross said.
“LGA South Australia and our members have sought to work constructively with the Federal Government on finding a workable solution that responds to the needs of South Australian communities to have safe, well-maintained local roads.
“We put forward fair and practical solutions, and we are pleased that the Federal Government has acknowledged this through its Budget commitment.”
Holmes-Ross thanked Ministers Catherine King and Kristy McBain, along with Senator Don Farrell, for supporting the funding commitment.
The funding is expected to help councils better plan long-term road maintenance and renewal projects, particularly in regional areas responsible for extensive local road networks.
“Reliable roads are critical for regional South Australia. They help move freight for key industries like agriculture and mining, make travel safer, and keep regional economies moving,” Holmes-Ross said.
“This funding will help councils manage rising construction costs so important road projects can continue without delay, helping to better connect regional communities, support economic growth, build resilience and improve liveability across the state.”
Ahead of the Budget, LGA South Australia had called for the SLRF program to increase to $31.8 million in 2026-27, along with a one-off $56 million catch-up payment to address years of unindexed funding and growing maintenance backlogs.
“While we didn’t quite see that level of funding committed in this Budget, this is still a significant step towards addressing the scale of the local road funding gap facing South Australian councils,” Holmes-Ross said.
“This commitment is an acknowledgment from the Federal Government of the disadvantage South Australia has faced in terms of local road funding and reflects the strength of our partnership in collaborating to find workable solutions to address long-standing issues.”
